THE EXTENSION OF RELAXATION CREDIT

The Financial Services Authority (OJK) finally decided to extend the credit restructuring program affected by Covid-19 which will end in March 2023. However, the extension of the relaxation of this policy is only segmented and sectoral. However, the extension of the relaxation of this policy is only segmented and sectoral.

According to OJK's Public Relations Director Darmansyah, for the period of 1 year until March 31, 2024, OJK will continue to support certain segments, sectors, industries, and regions (targeted) as opposed to re-restructuring the credit/financing at this time for the next three years. first, the MSME segment which covers all sectors. Second, the sector of providing accommodation and eating and drinking. And third, the industries that provide large employment opportunities, namely the textile and textile products (TPT) industry and the footwear industry.

The policy will remain in effect until the end of the contract between the lending institution and the debtor and is actually used by the lending institution and the business actors that still require it. The policy will be valid until March 2023.

As part of its monitoring of global economic developments, the OJK will pay close attention to the effect they have on the national economy, including its intermediation functions and the stability of its financial system.

Currently, OJK maintains that global economic uncertainty remains high as a result of the normalization of global economic policy by the US Central Bank (the Fed), as well as uncertainty in geopolitical conditions and high levels of inflation. This is due to a mixture of factors including the normalization of global economic policy by the Fed, geopolitical uncertainty, and high inflation levels.

The slowdown in economic growth around the world as predicted by several international institutions is inevitable in the coming years.